Eaton to sell Cooper Lighting Solutions to Signify for $1.4bn

Signify acquisition of Cooper Lighting Solutions : Eaton, a US power management company, has agreed to offload its lighting business – Cooper Lighting Solutions to the Netherlands-based Signify (formerly Philips Lighting) for $1.4 billion in an all-cash deal.

The US company decided to divest Cooper Lighting Solutions after carrying out a comprehensive review of several potential transaction alternatives with a goal to maximize shareholder value.

Eaton’s lighting business provides LED lighting, connected lighting, and lighting control solutions through its wide variety of products and systems that are designed to maximize energy efficiency and performance.

Cooper Lighting Solutions, which is headquartered in Peachtree City, Georgia, has products and applications for the indoor and also outdoor segments. Some of its brands sold across North America are Corelite, Halo, Metalux, and McGraw-Edison.

Cooper Lighting Solutions caters to customers across the industrial, commercial, residential and municipal markets, and had registered $1.7 billion in sales last year.

Craig Arnold – chairman and CEO of Eaton, commenting on Signify acquisition of Cooper Lighting Solutions, said: “Today’s announcement is another example of how we are actively managing our portfolio to create value for our shareholders”.

Goldman, Sachs & Co is serving as the financial advisor to Eaton in the transaction.

For Signify, the acquisition of Cooper Lighting Solutions is said to align with its strategy to grow in attractive markets and for improving its position in the North American market and enhancing the business mix.

The combined businesses, post-acquisition, are expected to be better placed to benefit from the growing $12 billion professional lighting market in North America, which is driven by the continued conversion to LED and the surging demand for connected lighting systems and controls, said Signify.

Commenting on Signify acquisition of Cooper Lighting Solutions Eric Rondolat – CEO of Signify, said: “Today’s announcement confirms the strategic importance of the North American market for Signify. This acquisition will substantially strengthen our position in this attractive market.

“We look forward to welcoming the team from Cooper Lighting. They have built a high-performance company based on professionalism, truly innovative offers and a long and strong relationship with their customers.

“We share a genuine passion and single focus for Lighting and a successful track record in innovation. We will join forces to further develop connected lighting and provide our customers with the highest level of service while optimizing operational efficiencies.”

Signify acquisition of Cooper Lighting Solutions is likely to be wrapped up in Q1 2020 and is subject to customary closing conditions and regulatory approvals.